American homeowners celebrated 47 months in a row of house price increases, according to a new study.
The figures for January 2016, released by market monitor CoreLogic, show prices were up 6.9% year-on-year.
But although house prices are still rising, the days of double digit increases have gone, says the company.
The month-on-month increase from December was 1.3% and this is expected to drop to 0.5% in February.
Despite four years of price rises, the value of an average US home is still 7% less than the peak values reported in April 2006, just before the financial downturn.
CoreLogic’s experts reckon nationwide average prices will not reach this level again until May 2017.
An annual rise of 5.5% is forecast for 2016.
Highs and lows by state
“Although average national house prices are improving, looking at the statistics on a state level shows that some are by far outperforming others,” said Dr Frank Northaft, the firm’s chief economist.
“The northwest and Rocky Mountain states provide four of the top five states for value increases.”
The firm breaks down home price rise and falls by state and metropolitan region.
States with largest year on year home price rises:
- Washington (11.6%)
- Colorado (10.9)
- Oregon (10.0%)
- Florida (9.1%)
- Idaho (8.4%)
States where home prices are farthest from their 2006 peak:
- Maryland (-23.1%)
- Arizona (-24.1%)
- Rhode Island (-25.4%)
- Florida (-26.3%)
- Nevada (-29.7%)
Florida shows the vagaries of the vast US homes market. Although reporting the fourth highest annual price increase (9.1%), homes in the state are still more than 25% below their peak value in 2006.
Not all states are prospering
Miami also posted the highest home price increases for a metropolitan area in January – 1.9%.
However, CoreLogic believes homes in the city are overvalued.
The highest year-on-year increase for city house prices was in Denver, where values were up 11.8%.
And despite average home prices rising for 47 months in a row, two reported price falls – Louisiana (-1.1%) and Mississippi (-1.3%).
Other US house price indices report similar results, but direct comparisons are impossible as they release figures for different periods.
The Standard & Poor’s Case-Shiller 20 City Index showed an average 0.8% increase, with 20 cities seeing prices rice and the rest experiencing falls.
According to this index, Miami prices dropped 0.3% for the month but rose 3.3% on the year.
